Business Intelligence 101

20120226

IntroductionBusiness intelligenceBI) is mainly refers to computer-based techniques used in identifying, extracting,clarification needed and analyzing business data, such as sales revenue by products and/or departments, or by associated osts and incomes.( BusinessDictionary.com,2010).Italso known as a broad category of applications and technologies for gathering,storing, analyzing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP),statistical analysis, forecasting, and data mining.( Luca Rossetti,2006).

Business intelligence applications can be a mission-critical and integral to an enterprise'soperations or occasional to meet a special requirement.It also enterprise-wide or local to one division, department, or project.Besides,it centrally initiated or driven by user demand.(Luca Rosetti,2006).

To conclude,(BI), bringing the right information at the right time to the right people in the rightformat. It is a 5-step process to run your business smarter, starting with registering the right data correctly, collecting the data from multiple sources, transforming, combining and storing it in a data warehouse.(BusinessIntelligenceToolBox,2012)

The Importance Of Business Intelligence

Based on some research,Business Intelligence (BI) is one of the 10 trends that will play a significant role in midsize and large enterprises in the year 2012. An organization will remaincompetitive,respond more quickly to changes and threats then its competitor,facilitate,discussion and decisions,it s better for them now to think how to deploy business intelligence in their framework.Business intelligence also make thebusiness improve as well as the collaboration and efficiency within the dynamic environment environment.Thus it is the time whereanorganization start to think how to make their current BI more efficient. (Katarina Krempova, 2012)

Business intelligence is not really about technology but evidently about information that thetechnology provides. The technology is only a vehicle used for collecting the information from various sources. But there is an immense amount of data available that could be collected.This data would have to be stored, analyzedand reported. (Katarina Krempova, 2012)

BI helps to transformthe relevant information into valuable knowledge because it unifies and relatesdata from the many different data pools and divisions.This is how theinformation will be converted into knowledge that can be utilized for manydifferent purposes, such as improving cross selling, customer service,communication, collaboration and processes. (KatarinaKrempova,2012)

These are the benefits of business intelligence which they can be an effective mechanism for institutionalizingthe best practices within the organization.The work system for each organizationwill be run smoothly with the existing of business intelligence.It also applyingexpertise into the most pressing issues.Business intelligence also continuously improving insight into the business and enhancing performance of the organization.It also an effective distribution of information within the company.An effective distribution of information within the company also can be provided by using the business intelligence.Other than that business intelligence enabling dialogue among people groups,functions,business unites in order to strengthen their collaboration.One of the most importance of business intelligence is it minimizing the time required for taking decisions and solving problems.It also rationalizing the systems environment as well as reducing the number of system as well as improving compliance and simplifyingdocumentation. (Katarina Krempova, 2012).

The Challenges of Business Intelligence

The challenges of business intelligence is basically how to implement the business intelligencein the organization.There are 8 challenges of business intelligence,and of them is,they have to define the strategy and build the supporting infrastructure as the basics underpinning your data quality program will determine your success in establishing a solid BI Framework.Other than that,defining the vison that will provide you guidance in the Business Intelligence Process.This will help the organization to be more clear about the implementation of BI. (Katarina Krempova,2012)

Strategic goals also need to be define which will specify what you wish to achieve.A clear statedcommunication about the specific goal is needed before the organization whole aligns with them. They also need to establish the BI Governance in order to bring your BI Platform in line with corporate strategy and diversity,especially with IT requirements. The BI Governance is aimed at managing the quality, consistency, relevancy, availability and accuracy of information todeliver high-quality company BI solutions. (Katarina Krempova,2012).

Business Intelligence tools,like data mining tools, OLAP tools, reporting tools and spreadsheets that are compatible with the organization’s needs is also the challenges of implementthe business intelligence in the organization.Besides that,social media also can be used as a source for bring the understanding between the organization.(Katarina Krempova, 2012)

The last two of the challenges of implementing the business intelligence in the organization is,thepeople,structure and process of the organization.They do not need to specify how the BI center will be organized,and which services will be provided and which roles people will be working because all of the process will be process via BI.Despite of people and structure,they also need tohave project management to keep things moving and facilitates synchronization and continuous improvement. (Katarina Krempova, 2012)

Business Intelligence Opportunities.

Business intelligence (BI) as business information and business analysis in support of fact-baseddecisions in the context of business processes that impact profits, it quickly becomes clear that business intelligence is a broad concept. The nature of business information varies along a number of dimensions, including whether the business information:

These are some of BI opportunities,which is BI is about the enterprise as a whole or about subunits of the organization such as strategic business units or functional departments.Other than that,it is about the company or about other entities in the value chain, such as customers and suppliers.BI is about current business transactions and status or about transactions thatoccurred and were closed out in prior months or years.It is generated by a company’s internal information systems or whether it is obtained from external sources such as market research firms.It also used for management processes, revenue generating processes, or operating processes.( Nancy Williams,2008).

BI also detailed as transactional information or summarized information about many transactions.They intended to be directly accessed by end users or whether it exists as input to simulations and models.Lastly,they intended for power users, general users, or executives.( Nancy Williams,2008).To conclude, BI opportunities can be segmented into three majorbusiness process categories: management processes, revenue generation processes, and operating processes. ( Nancy Williams,2008).

ConclusionBusiness Intelligencehas been world wide and being as an important tools in any of organization as it helps them to run their process smoothly and effective to all organization needs.

References

1. BusinessDictionary.com,2010 What is BI – Business Intelligence?, 20122. Katarina Krempova, 2012 An insight into the importance of intelligent,16 February 20123. Luca Rossetti,2006 Business Intelligence ; definition (BI)4. Nancy,Steve Williams,2008 Business Intelligence Opportunities – A General Overview September 23,2008